Hudson County rents shoot up an average of 7.2 percent in 2011

Rents at 77 Hudson St. in Jersey CIty have climbed by as much as 16 percent.

The average asking rent for an available apartment in Hudson County has shot up 7.2 percent over the past year, with some luxury buildings seeing increases closer to 16 percent, according to a market report by the commercial real estate firm Cushman & Wakefield.

The new numbers bring much of the market back to levels last seen in 2008, says the report, which predicts new housing will be on the way to meet demand.

According to Robert Antonicello, executive director of the Jersey City Redevelopment Agency, the rental market is reacting to pent-up demand. Many would-be buyers are currently renters due to economic conditions and an under-supply of condos. Antonicello agrees that more residences will be built to meet the demand. “People originally come to Jersey City because they like the convenience of the city. They discover the city, and they love the city once they live in it,” said Antonicello.

Some Hudson renters are getting squeezed out of more popular locations such as Hoboken and the Jersey City waterfront.

“With average rental rates on the rise, most college students and recent grads are now forced into surrounding communities (in Hudson County) , while Hoboken is attracting families, athletes, and entrepreneurs,” said Kristin Ehrgott, luxury residential specialist for Prudential Castle Point Realty.

According to the report, three-bedroom residences make up only 5.5 percent of the Hudson County market, with an average size of 1,487 square feet. The increased demand has pushed asking rents of three-bedroom units to roughly $3,848 per month, nearly $1,200 more than the rest of Northern New Jersey.

Antonicello said that in 2012, Jersey City will see between 1,400 and 1,600 units start construction, including units in Journal Square.

One of the buildings that has seen rent increases closer to 16 percent is 77 Hudson St. in Jersey City, according to Scott Waldman, the building’s broker who says investors are buying properties in order to rent out to tenants.

“We’ve seen a tremendous increase in sales. We’ve sold 46 homes since September, with many of those sales to investors, proving the market is coming back,” he said.